Market Unrest Sparked by Arbitrum Token Sell-Off
The layer 2 protocol, Arbitrum, underwent a notable sell-off of its inherent token, ARB, causing a ripple effect through the market. This sell-off was prompted by the release of 1.1 billion ARB tokens as per the protocol’s 2024 roadmap plans. The immediate impact was a documented 18% decrease in token value over the preceding week. The ‘Arbitrum token sell-off’ was further intensified as large-scale holders, known colloquially as ‘whales’, began to transfer their ARB tokens to exchanges, presumably for selling. This action may hint at further depreciation in token prices. The tokens’ release signifies the initiation of a four-year phase, wherein a predetermined quantity of tokens will be released every four weeks until 2027. Data collected by analysis firm Lookonchain indicates that 11 such ‘whales’ moved 34 million ARB tokens (equivalent to $58 million) to exchanges in the wake of the token release. Additionally, ‘The Data Nerd’, an on-chain data provider, recorded trading company Wintermute consistently depositing ARB tokens, an act that suggests the tokens are being readied for sale. Following the token unlock, the ARB token saw a 29% decrease from its all-time high (ATH) of $2.39 on June 12, 2024. Despite reaching a post-unlock peak of $1.96, the token value fell to $1.61 within 48 hours. Despite the recent downturn, patterns from past data suggest potential for a rebound and positive price movement in the coming weeks.
Not financial advice. Always be safe and secure when dealing with cryptocurrency. Never send anyone your private key. Always Do Your Own Research..DYOR..DYOR..DYOR!
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